Best green mortgage deals

What is a green mortgage?

A green mortgage is a special type of mortgage that rewards you for owning, buying, or upgrading an energy-efficient home.

Usually, you’ll need your home to have a good Energy Performance Certificate (EPC) rating – often A or B, but some lenders accept C too.

If your home qualifies, you might get:

• A lower mortgage interest rate
• Cashback when you complete your purchase
• Help towards making energy-saving improvements

It’s a great way to make your home better for the environment while also saving money on your mortgage.

Why choose a green mortgage?

Green mortgages offer some brilliant advantages:

• Lower mortgage rates for energy-efficient homes
• Cashback rewards with some lenders
• Help the environment by cutting carbon emissions

If you’re already looking at newer homes, or if you’re planning to renovate an older property, a green mortgage could be a really good option.

Some lenders even offer extra support if you want to carry out improvements that will boost your home's EPC rating after you buy it.

How green mortgages work

When you apply for a green mortgage, your lender will usually ask for proof of your home’s energy efficiency. This will normally be an EPC certificate showing your home's rating.

The better the rating, the more likely you are to qualify for a special rate or reward.

Some lenders will also let you apply for a green mortgage if you’re planning improvements – like fitting solar panels or upgrading your insulation – that will boost the EPC rating after you move in.

Who can get a green mortgage?

Incentives provided by green mortgages are usually only available to those buying properties with an Energy Performance Certificate (EPC) rating of B or above, although some maybe available to homeowners with a lower C rating.

You may be eligible for a green mortgage if you already own a property which you’ve made more energy efficient by making improvements such as fitting solar panels, insulating your loft, or installing double-glazed windows.

Lenders will want to see:

• Proof of your home’s EPC rating
• That you can afford the mortgage repayments
• A good credit history
• Proof of income and recent bank statements

If you’re self-employed, you’ll also need to show tax returns or business accounts.

Before applying, it’s a good idea to check your credit report with Experian, Equifax or TransUnion. Making sure your report is up-to-date and accurate can help you qualify for the best green mortgage rates.

How to find the best green mortgage deals

Not all lenders offer green mortgages, and the deals can vary, so it’s important to shop around.

You can use our online Mortgage Finder to check the latest green mortgage deals from across the market.

We work with over 90 lenders and can help you compare what’s available to find the right deal for your situation. Whether you’re buying a new-build with a high EPC rating or upgrading an older property, we’ll help you explore your options.

Our expert advisers can guide you through the process and explain everything clearly, so you know exactly what to expect.

Making repayments on a green mortgage

Repayments on a green mortgage work just like a normal mortgage. The difference is that your interest rate could be lower, saving you money over time.

Depending on the deal, you might also get cashback once your mortgage completes, or support towards eco-friendly upgrades.

As always, it’s important to make sure you can afford the repayments now and in the future, especially if your deal has a fixed period and might change later.